Knowledge creation has emerged as a critical area in information systems research in the past decade (Nonaka 1994). However, the mechanism through which knowledge creation enhances firm performance remains unclear. This paper examines the role of organization agility as a mediator between knowledge creation processes and firm performance. Our survey study of 134 firms indicates that two forms of organizational agility – customer agility and operational agility, significantly and fully mediate the effect of knowledge creation on firm performance. Our findings extend prior research by providing insights into the role of organizational agility in facilitating the effect of knowledge creation processes on firm performance. Implications for researchers and managers are discussed.